Operating ROA Is Calculated as ________, While ROE Is Calculated

question 19

Multiple Choice

Operating ROA is calculated as ________, while ROE is calculated as ________.

• A) EBIT/total assets; net profit/total assets
• B) net profit/total assets; EBIT/total assets
• C) EBIT/total assets; net profit/equity
• D) net profit/EBIT; sales/total assets

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Definitions:

Economic Recovery

The process by which a nation's economy begins to thrive again following a period of decline or recession, marked by increases in employment, consumer spending, and overall economic growth.

Industrial Workers

Employees involved in the manufacturing sector, often in factories, who contribute to the production of goods.

Collective Bargaining

The process of negotiations between an employer and a group of employees to regulate working conditions.